Indiana Department of Natural Resources

The historic Indiana Dunes State Park Pavilion was constructed in 1929-30. It is an iconic representation of the park’s early history and use. It once contained a fine-dining restaurant. Over the years, its functionality has changed, and the DNR has been unable to adequately fund interior restoration and maintenance. The facility’s aging restrooms do not meet the needs of visitors. A small concession operates during summer, as does a lifeguard office. The remaining space is storage area.

With a desire to restore this facility to its original use and care for it appropriately, the State has entered into a lease with Pavilion Partners, LLC, for adaptive reuse of the structure and the addition of a banquet center that is compatible with the nature of this historic building and the unique natural features of the site. The contract was established in 2014 and a new restroom/comfort station/facility opened during the summer of 2015, built entirely at the expense of Pavilion Partners. Initial demolition of the Pavilion’s interior commenced in 2015 and construction is expected to begin upon final plan approval.

Plan development is underway for the Pavilion interior and for the banquet center. We continue to welcome your questions and suggestions for ensuring that great visitor experiences continue to be provided for both beachgoers and users of the restaurant and banquet center. Share your thoughts or ask questions by emailing DunesPavilion@dnr.IN.gov. Questions, comments and our responses will be periodically combined and posted on this website. Plans for the Pavilion and banquet center will be posted on this site when they are available, and opportunities will be provided for comment.

Introduction

What pavilion services will be available in 2016?

Limited concession services - snacks, ice cream, etc. - are available temporarily during Pavilion renovation. New restrooms opened on July 17, 2015. Cleaning and restroom maintenance is provided by Pavilion Partners.

What facilities will the pavilion and banquet center include?

The casual dining restaurant, ice cream shop and rooftop dining in the Pavilion are projected to open in 2017. The banquet center is planned for opening in 2018 to provide indoor space for wedding receptions, meetings and other events. The banquet center space may also be available for park-sponsored public events. This facility's design allows for an open view of the water and beautiful sunsets, both for beachgoers and for pavilion guests. A gallery will depict the history of the Dunes. No hotel facilities are being planned or built.

Who stands to benefit from this project?

Above all, park visitors will benefit from improved and expanded food options, ability to enjoy the beach year-round, opportunity to have conferences and weddings on site, additional options for shade and seating, greatly improved restroom and shower facilities, and increased amenities such as lockers. The state park will benefit through the rehabilitation of the historic pavilion, which has been needed for decades. The park will receive a base rent, a percentage of gross revenues, a lengthened busy season, increased exposure, and increased revenue and from gate fees and annual-pass sales. The project also is expected to attract new user groups and will benefit the entire area by increasing tourism opportunities. This will be the only beachfront dining/conference facility along Indiana’s 44 miles of Lake Michigan shoreline. The developers also anticipate receiving a return on their significant investment of $3-4 million in the project.

Process for establishing this public-private partnership

What process was used to select the company that will restore and operate the facilities?

The State of Indiana has an open and public process for projects such as this through the use of a prospectus (Indiana Code 14-18-2). It included these general steps:

A prospectus was developed that provided an agency overview of the need.

Three legal ads appeared at 10-day intervals during a 30-day period in five daily newspapers of wide and general circulation in Indiana (per IC 14-18-2-4). The project was advertised in Indianapolis, South Bend, Lafayette, Chesterton and Fort Wayne. Eighteen prospectus packets were requested and distributed.

Potential responders asked questions, and responses to all questions were shared with those who expressed an interest in the project.

Two proposals were submitted for review.

A team of DNR executives and staff reviewed both proposals, and both respondents provided presentations for the team of reviewers in May 2012.

The preferred proposal was selected.

The Natural Resources Commission gave approval as required to negotiate a contract/lease with the selected vendor/lessee. (May 2012)

The lease was negotiated with the selected vendor/lessee. Pavilion Partners was selected based on the strength of its proposal and its ability to fully fund the project. The prospectus and the proposal from Pavilion Partners, LLC, can be reviewed as an addendum to the lease at https://fs.gmis.in.gov/IDOAcontracts/public/85097-000.pdf.

What was the specific timeline for the development of this lease?

Fall of 2011 – Prospectus developed by DNR for the adaptive reuse of the Dunes pavilion.

Nov. 18, 2011 – First statement of intent advertised in the legal sections of newspapers in Indianapolis, South Bend, Lafayette, Chesterton and Fort Wayne. Prospectus available to interested parties.

Nov. 30, 2011 - Second statement of intent advertised in the legal sections of newspapers in Indianapolis, South Bend, Lafayette, Chesterton and Fort Wayne.

Dec. 16, 2011 – Third statement of intent advertised in the legal sections of newspapers in Indianapolis, South Bend, Lafayette, Chesterton and Fort Wayne.

The architect was engaged by Pavilion Partners, LLC when they were putting together their proposal. The DNR didn’t need to give anyone “permission” to work on plans with an architect.

It appears there have been several changes from the original proposal now that the lease has been signed—is that normal?

There are always changes and negotiations between submission of a proposal and the final agreement. A prospectus/request for proposal (RFP) gives potential vendors an opportunity to submit their creative ideas, but the DNR does not have to accept any or all of them. As a result, the lease may look very different from the initial proposal. The change in the law that allows alcohol in/around the pavilion premises was required to allow alcohol to be served in the restaurant or at banquet events. Alcohol will continue to be prohibited on the beach.

How much visitor, taxpayer and citizenry input was taken into consideration?

The State’s process for releasing a prospectus/request for proposal was followed. That process does not require public meetings or hearings for establishing a contract for a project. Despite that, the DNR has now hosted an open house and a public meeting. We have received numerous comment cards and emails with comments and questions. We are posting responses to those questions on this page as they are available (questions worded similarly are being generally being combined into one response). We are posting all required permits/approval documents as they become available and will continue to do so. The project is moving forward and Pavilion Partners, LLC and the DNR are listening to those comments and questions in designing the banquet center.

Was an outside consultant used in the decision to add a banquet facility, or was it the architect who was hired to design a new facility making that decision?

Pavilion Partners, LLC selected the architect to help evaluate the building as they prepared their proposal for submission.

Why are a select few individuals - many of them with Republican Party ties - allowed to profit at the taxpayers and the dunes expense?

Public-private partnerships are common. This project was evaluated based on the proposals submitted, not awarded based on political affiliations.

When will Pavilion Partners answer questions about the project?

Pavilion Partners has done several presentations related to the project for local groups. When the design is completed there will be additional opportunities for discussion and input.

How did the banquet center come about? I knew about a restaurant but nothing about new construction of a conference facility.

While new construction was not required as part of the proposal process, it was clearly acknowledged in the prospectus that the possibility of constructing a new facility (or facilities) existed. The existing pavilion structure is not suited to host any sort of public event or presentation due to the configuration of the structural pillars, which are 15 feet apart in each direction inside the pavilion. Views are obstructed from every point. The ability to conduct meetings and weddings is considered critical for the facility to be financially viable year-round. The prospectus also stated that new restrooms would need to be constructed if the restrooms were moved out of the existing building.

Is it appropriate for a private business to operate inside an Indiana State Park?

This is common practice, although the patron may not realize it. There are many instances where the Indiana State Parks system has concession and lease arrangements, including marinas, restaurants, lodging, and concessions. Indiana State Parks takes this approach when a service is needed but it is not financially feasible for us to develop or staff it.

The pavilion has had an outside restaurant/concession operator for decades. This project will enhance and improve what has been in place for years. Additionally, we also have specific guidelines for property signage and policies related to partnerships that place a primary focus on the natural and cultural resources.

What role has Indiana Dunes Tourism played in this project if any?

Indiana Dunes Tourism's focus is drawing visitors to the region. They were not involved in the development of DNR's Request for Proposal (RFP) or the selection of Pavilion Partners as the partner in this project. They did help publicize the availability of the RFP to local and regional business entities, as they would with any local business opportunity that would align with their tourism goals. They provided an opportunity for a Pavilion Partners' presentation and public input at a 2015 board meeting. For additional details and responses to questions asked at that board meeting, see ""IN Dunes Tourism Statement and Q&A" in the documents section below.

Conserving the environment

Will this affect any remaining natural areas of the park?

All of the construction is occurring on existing concrete and asphalt. No natural areas will be affected. The DNR and the staff at Indiana Dunes work diligently to manage and protect the park’s unique natural resources. Two separate Dunes Creek daylighting projects have won multiple awards and recognition, including the Governor’s Award for Environmental Excellence, the Association of Conservation Engineers national project award, the EPA / Chicago Wilderness Conservation and Native Landscaping Award, and the Izaak Walton League’s Jane Dustin Water Quality Award. The project team was also inducted into the Northwest Indiana Society of Innovators in 2013. The new Dunes Prairie Nature Preserve was dedicated in 2008. Nearly 70 acres of black oak savanna restoration has occurred, and an additional 32 acres of restoration is underway. Stewardship, interpretation and education remain a focus. Programs and initiatives such as owl banding and the 3 Dune Challenge continue to drive and increase visitation, with 2014 the highest attendance ever for the park’s Nature Center (82,691). Federal grants from the Lake Michigan Coastal Program and the U.S. EPA have been obtained each year since 2005 to maintain a crew dedicated solely to eradicating invasive species. From a historic perspective, the site of the J.D. Marshall shipwreck has been permanently protected as a nature preserve.

Where is the environmental impact report?

Because there are no federal dollars being used, no environmental impact statement (EIS) is required. However, an early coordination/environmental assessment was requested by Pavilion Partners, LLC and provided by DNR Division of Fish & Wildlife. This report is posted in the documents section below. As the project progresses, an Environmental Assessment will be completed in association with Land and Water Conservation Fund requirements.

Was an endangered species review done?

Yes, this was completed as a part of the early coordination/environmental assessment. It is available in the documents section on below.

We thought the DNR agreed not to disturb the sand dunes. Why is sand being removed/disturbed in the area near the new restrooms?

The sand that was moved to the west of the wall where the restrooms were built is sand that builds up at that site every winter. DNR staff move sand from that location every spring to keep the wall from being covered. This sand is not part of a long-standing dune.

Don’t the concrete pads around the pavilion help prevent sand erosion from around the pavilion and help preserve the foundation?

Yes, that is one of their functions, as is providing a hard surface for visitors to use for dressing, eating, etc. The concrete pad will still exist around the new building. The new building will not cover the entire pad(s). Concrete will remain under the new building on the open ground floor.

What will prevent further sand erosion when these other two buildings are constructed?

Both of the new buildings will be behind the existing concrete knee wall on the north side of the pavilion. As a result these buildings won’t change the dynamic or function of that wall. We won’t be able to extend the pad to the east because of Dunes Creek, nor to the west because of the extreme elevation change.

Will there be any treatments or efforts made to reduce the impact on bird populations because the banquet center might contain a lot of glass?

The surrounding dunes, which are much higher than either the pavilion is now or the banquet center will be, make the pavilion a low-profile building. Most migratory passerines stopping over will drop out into the treetops on the dunes, not on the area where there is open beach with an existing building and a parking lot behind it. Passerines in longshore flight or nocturnal flight fly higher than the pavilion. There is the potential for collisions with gulls, shorebirds and other species that might regularly visit the beach, and Pavilion Partners, LLC will look at the best options for addressing that concern.

How will concerns about the value of dark skies for astronomy programs and viewing stars and the Milky Way be addressed?

Pavilion Partners, LLC and the DNR will be evaluating the best options to provide appropriate lighting that addresses these concerns, including the ability to turn off outside lighting during astronomy programs/events. In reality, Indiana Dunes State Park sits at the cusp of Chicago's major light pollution. The location, although benefiting from 300 miles of dark sky to the north, does not equal the stargazing opportunities that exist farther south, particularly at Tippecanoe River State Park. Despite this, interpreting the night sky has remained a priority with the park's interpretive programming and will continue to be so. Currently, park staff offers several stargazing programs, split between the beach main lot and the beach west lot. When such events are held close to the pavilion, the pavilion lights are turned off for better viewing. The beach west lot has no lighting and is optimal for stargazing in the park. On the darkest nights, the Milky Way is visible but lacks detail and is often lost as one follows it toward the horizon. Most zodiacal light is not visible from Indiana Dunes State Park.

Are there any luna moths in Indiana Dunes State Park, and what impact do you expect the pavilion project will have on them?

The same moths and nocturnal insects that are affected by streetlights throughout the region may be affected by lighting here. Lunas are common moths found throughout the U.S., and they are found at Indiana Dunes State Park. Their short, one-week-long, adult lifespan and nocturnal nature makes them difficult to observe. While present, they are not abundant near the beach due to their specific host-plant needs of hickory, sweet gum, and persimmon. These species do not exist in abundance at Indiana Dunes State Park. Pavilion Partners, LLC is looking at all options to provide dark-sky friendly lighting to reduce light pollution and effects on nocturnal insects.

The project is in a floodplain, and a portion of the area where the building is planned collapsed during heavy rainfall in 2008. How will the possibility of future collapse be addressed?

The flood and collapse in 2008 predated (and ultimately initiated) the phase 2 daylighting of Dunes Creek. Before the daylighting project, if floodwater breached the structure at the south end of the parking lot, it traveled to the lake via sheet-flow across the entire parking lot. This is what caused the collapse. The daylighting project created a deep channel and added significant capacity to the amount of water that can be handled by the pipe and the channel. Flooding should no longer be an issue.

In the spring of 2016, the route of Dunes Creek changed significantly as a result of weather conditions. The route moved the creek much closer to the Pavilion. Should that not be a consideration in the construction process?

We watch the route of Dunes Creek carefully during and following significant weather events, and we have, with appropriate permits in place, regularly returned the stream to its primary route to conserve the public beach space that visitors love. We anticipate that we will continue to do that. The Pavilion was constructed in 1929-30, and it is still standing.

How does this project fit with the slogan, "memories made naturally?"

The project is faithful to our mission and goals, which are listed at www.stateparks.IN.gov/6169.htm. The restaurant or banquet center experience will be memorable for many.

Will Land and Water Conservation Fund (LWCF) requirements affect completion of this project?

In a word, no; however, please read this entire response. It explains what LWCF is, how it works and what DNR and NPS are doing to determine potential impacts.

The LWCF is a matching-assistance program that provides grants for 50% of the cost for the acquisition and/or development of outdoor recreation sites and facilities. Since the program began, Indiana has received approximately $84 million in federal funds. The allocation usually is divided between DNR’s projects and local government park projects, depending on funding levels. More than $49 million has been provided to local agencies through the program. More than 30,000 acres of land have been acquired in Indiana with LWCF assistance for public outdoor recreation use and conservation. The main source of funding for the LWCF grants comes from federal offshore oil lease revenues. The DNR Division of Outdoor Recreation manages LWCF for Indiana. The National Park Service administers LWCF grants and oversight nationally. DNR works closely with NPS to evaluate possible projects and to ensure that LWCF-funded projects remain in compliance with policies. You can read more about the LWCF in Indiana at http://www.in.gov/dnr/outdoor/4071.htm.

When a project or land purchase uses LWCF funds, that project must provide access to outdoor recreation in perpetuity; however, when the fund was established there was an understanding that new projects created to respond to new circumstances or new public needs might result in changes to sites with LWCF funding. For that reason, a process was established called 6(f)3 conversion, which allows the NPS to review and approve requests from agencies to convert all or part of an LWCF project to uses other than outdoor recreation and replace that converted property with equal- or greater-value park property, either at the same location or at other sites, into LWCF protection.

DNR is very familiar with LWCF requirements and has worked closely with NPS in converting dozens of acres throughout Indiana – it is not an uncommon action for us. There are a number of projects at Indiana Dunes for which LWCF funds have been used. They include:

We have been in discussion with DNR’s LWCF coordinator regarding the Dunes Pavilion and banquet center. We have also been in conversation with NPS’ Midwest Regional Office regarding the facilities and any impacts on LWCF requirements. NPS has determined the following:

The new restroom-shower building is an accepted outdoor recreation use, and requires no additional evaluation through LWCF.

Per the letter from NPS dated 9-16-16 and provided in the DOCUMENTS section below, activities planned for the Pavilion qualify as outdoor recreation uses in accordance with the NPS Memorandum for Allowable Uses of Buildings Located on LWCF 6(f)(3) Protected Lands (Memo) dated January 16, 2014, and the Pavilion requires no additional evaluation through LWCF.

Minor edits to the lease are required to specifically reference LWCF, and those revisions are in process. The revised lease will be posted when it is fully executed.

Pavilion Partners can now move forward with final design and renovations to the Pavilion with DNR approval.

NPS has, per same letter in the DOCUMENTS section, determined that the banquet center will be converted from LWCF use. DNR is currently examining next steps in that process.

Historic preservation

Why build a new building like the inn at Potato Creek when we have old buildings to take care of?

When we make decisions about capital projects, whether it is building a new facility or renovating existing facilities, we look at the big picture and establish priorities based on funding, demographics, user needs, potential use, length of season and a variety of other factors specific to individual projects. Indiana State Parks has seven inns. Five of the seven are in southern Indiana. One is in Indianapolis. Only one — Potawatomi Inn — is in the northern part of the state. Developing a second inn in northern Indiana is an important element in providing customer satisfaction and generating revenue to support our state park inns system.

Aren’t historic structures on state properties protected from modification?

The DNR Division of Historic Preservation & Archaeology (DHPA) has reviewed and approved the proposed plans for the Pavilion. DHPA uses the federal government’s Secretary of the Interior standards for historic preservation to evaluate historic buildings and their historical integrity. Using established criteria, they decide if a building is eligible to be listed on the National Register of Historic Places. If a building is listed, or even eligible to be listed, certain protections come with that, but it does not mean a historic building owned by the State cannot be changed, or even demolished. There is a process we must go through if we have a project that will alter a historic building. Pavilion Partners, LLC is fully committed to increasing access and enhancing the visitor experience to the Dunes by sensitively and carefully restoring the Pavilion building. Photographs of the original interior and exterior of the building are being used to guide decisions about the restoration.

When did the State Historic Preservation Officer sign off on this project? Can we get copies of the approval? Will the final versions of the banquet center plans be reviewed and approved?

The Division of Historic Preservation & Archaeology reviewed the plans for the pavilion, restrooms and early design of the banquet center. Approval letters can be viewed in the documents section below. Virtue Architects continues to work on the banquet center plans with comments and advice from DHPA. When those plans are complete, they will be posted on this site.

Park logistics

Is the facility open to all?

Yes. Everyone will be welcome to eat meals in the restaurant or rent the banquet center for weddings or other events.

Will this project reduce beach access?

No, this project will not hinder beach access. Currently, beach goers access the beach from either the Pavilion Lot or the West Lot. From the Pavilion Lot, users must access the beach via one of the two openings in the wall in front of the pavilion. Both openings will remain with unrestricted access. Access from the west lot will not be affected.

Will the beach be open during different hours for the people at parties in the banquet center?

No, the beach hours will remain the same, and there will be no additional cost for lifeguards or DNR staff related to the beach.

Can the two-lane road handle the increase in traffic, including beach goers, vendors, hotel accommodations and emergency/first responders?

The maximum vehicle capacity of the park will not change, so traffic will be handled in the same way as we currently handle our busy days. There will be no reserved or preferential parking. Once the lots are full, we will let a number of vehicles in as a corresponding number of vehicles exit. For emergency vehicles, we use park staff to stop outgoing traffic. Responders enter the park via the outgoing (west) lane, passing the vehicles in queue. Pavilion Partners, LLC is also looking closely at options for shuttling in banquet customers. And, as a reminder, there will be no hotel facilities developed in the state park.

Will there be a loss of parking?

This project will reduce existing parking by six spaces. Off-site parking/shuttle options are being analyzed. The Dunes Creek daylighting project and the entrance improvements have reduced beach parking at Indiana Dunes by more than 600 spaces over the last decade. This has reduced the carrying capacity on the busiest weekend days. The reduction has greatly improved the visitor experience. Weekday visitation has increased significantly, more than offsetting any revenue or visitation that was lost on weekends from reduced parking.

Will the pavilion lot be available only for customers of the pavilion restaurant/banquet center?

No. There will be no reserved or set-aside parking; all three beach lots will remain first-come/first-served. Off-site parking and shuttle services are planned for events at the new center to minimize parking concerns for beach guests and provide convenience to event attendees.

Do guests going to the banquet center have to pay to get into the park?

Yes, visitors to the restaurant and banquet center will, for the most part, pay the gate fee. Gate fees may be rolled into a banquet cost for groups if requested. There are occasions across the state parks system where we issue gate waivers or issue special permits for groups. The lease allows Pavilion Partners, LLC to apply for such gate waivers; however, applying for a gate waiver does not mean the request will be granted.

Can people have wedding ceremonies on the beach?

We occasionally have requests for weddings on the beach. Individuals may currently apply for a $50 wedding permit from the DNR. Ceremonies are allowed ONLY after regular beach hours. No receptions are currently allowed on the beach. After the banquet center opens, weddings may be held in the banquet center. If individuals want to hold a ceremony on the beach, they will still need to obtain a $50 wedding permit. Ceremonies will only be approved to be held after the regular beach hours, just as is the case now.

Will DNR stipulate in writing that not now or ever will the beach be cordoned off for a “wedding on the beach” or other private, commercial event?

We cannot stipulate that, but we do not intend to allow Pavilion Partners, LLC unlimited access to the beach. We do not intend to disrupt beach use for visitors, but there are occasional weddings on the beach NOW, after official beach hours, and there are occasions outside the summer season where we DO have roped-off areas for events. For example, we host a permitted event every other year in May with metal detector enthusiasts.

Isn’t the park already too busy to add this facility?

The park fills to capacity only 15-20 days per year. The remaining 350 days have ample parking. The developers understand that there is no ability to give preferential treatment to those waiting in line to enter the park, and their business model will reflect that knowledge. For example, they will not book a wedding for 2 p.m. on a Saturday in July. The increased visitation will occur later in the day (on busy days), on weekdays, and during the three non-summer seasons. Mid-day weekend visitation will not increase. We are already at capacity on those days.

When will the banquet center be open, and when can facility reservations be made?

Current projections indicate that the banquet center will be open for the 2018 season. We will provide details for making reservations for events at a later date.

Alcohol

Will alcohol be allowed in the pavilion restaurant and conference facility?

Yes, that is the plan, but alcohol will continue to be prohibited on all other parts of the property, including the beach.

It seems there have been several pieces of legislation passed related to alcohol on DNR properties over the last few years. Can you clarify that timeline and why the legislation was passed?

2012 - Legislation was initially passed to allow alcohol in the pavilion as a part of the dining experience after this restoration is complete, since there was a prohibition on alcohol in all of Indiana Dunes State Park at that time. (Note - that prohibition does not extend to other state parks and reservoirs, other than at beaches.). A 2014 Natural Resources Commission ruling reinforced this approach.

2015 - Legislation passed that also allows alcohol within 100 feet of the pavilion premises as legally defined in the lease. This extension was primarily to accommodate one-day, off-season events such as a wine-tasting that might be planned for a tent set up in the parking lot. Pavilion Partners, LLC is required to obtain a special events permit from the DNR for any event of this nature outside the pavilion, and approval is not guaranteed. Pavilion Partners is also required to obtain all appropriate alcohol licenses and permits for the pavilion or for special events approved by the DNR. These permits would clearly define where alcohol is allowed and where it is prohibited. Alcohol will continue to be banned throughout the rest of the park, including the beach.

2016 – Legislation (IC 7.1-3-17.8) passed that allows DNR to obtain an alcohol permit directly from the State Alcohol and Tobacco Commission (ATC) for state parks or sections of state parks without county ATC review. To clarify how DNR intend to work within the framework of this legislation, two follow-up emergency rules have been signed and posted that do the following:

Emergency Rule LSA Document #16-273(E), which temporarily adds a definition of state park in 312 IAC 8-1.5 pursuant to IC 7.1-3-17.8. Effective July 1, 2016. This in effect defines which properties operated by the Division of State Parks that the Division may request three-way alcohol permits for. It does not mean that we are required to apply for three-way permits for each of these facilities. Although the 8 big reservoirs are a part of the Division of State Parks, they are not included on this list for possible alcohol permits by the Division. The process for permanent adoption of this rule will begin at the Natural Resources Commission meeting on July 19, 2016.

Emergency Rule LSA Document #16-274, which temporarily amends 312 IAC 8-2-5 to allow the consumption or possession of an alcoholic beverage at Indiana Dunes State Park as authorized by IC 7.1-3-17.8 or IC 14-18-2-3. Effective July 1, 2016. Prior to this change, the rule provided that alcohol was only allowed pursuant to IC 14-18-2-3. The requested changed in the rule is necessary to reflect the legislative amendments made during the 2016 session that allow DNR to obtain an alcohol permit directly from the ATC. This emergency rule simply aligns our property rules with the legislation. The process for permanent rule adoption, which will begin at the Natural Resources Commission on July 19, 2016, will clearly state that alcohol is not permitted at the beach or any other part of the property. Dunes will continue to have the most restrictive alcohol policy of any property within the state park system.

These two emergency rules have been added to our list of documents on this webpage. The permanent rule promulgation process begins, as noted, with the Natural Resources Commission on July 19, 2016.

This legislation can certainly impact the Pavilion and banquet center at Indiana Dunes, but it also allows DNR to obtain three-way permits for the sale of alcohol for shelters, amphitheaters and other areas of some state parks that are popular for weddings and other large group events. DNR – and in particular our Indiana State Park Inns – can cater those events and bear the responsibility for alcohol service and monitoring rather than a family or organization member.

Won’t this increase the possibility of alcohol on the beach?

Alcohol will continue to be banned throughout the rest of the park and beach.

Why did the legislation need to be passed? Why are no other state parks seeking the ability to allow or provide alcohol?

Alcohol is allowed at all other parks. Furthermore, all of the Indiana State Park Inns have obtained the appropriate permits and currently sell alcoholic beverages. The 2012 and 2014 legislation allows application for three-way alcohol permits for the Pavilion and Banquet Center, and for the area just outside the Pavilion/Banquet Center for special events IF DNR agrees to those special events. The 2016 legislation allows us to request permits that expand beyond the individual state park inns to large shelters or other facilities where guests may want to host events that include alcohol

Will there be safety issues for pedestrians with drivers who have been drinking? Will the DNR pay for additional security and lifeguards that may be needed?

Security will be the responsibility of Pavilion Partners, LLC through those who are renting a facility. The DNR will not provide additional security or lifeguards. The issue of driving while under the influence will continue to be monitored by local law enforcement officers, just as in the past.

What will you do about broken glass or littering on the beach from the use of alcohol?

Pavilion Partners, LLC staff and security will be responsible for policing this and making sure items are not discarded on the beach. Alcohol is still prohibited on the beach.

Will the state have a higher insurance cost because of this added activity at the beach?

The state is self-insured, so we do not have insurance costs. Pavilion Partners is required by the lease to hold insurance and name the DNR as additionally insured.

Who will be sued if someone drowns because they consumed alcohol within the park gates?

The party filing a lawsuit can sue whomever they feel is appropriate. However, filing a lawsuit is just the beginning; the party must also prove its case against those being sued

Banquet center design

Is the design completed for the banquet center? Can we make recommendations?

Design for the Banquet Center is underway, and plans will be posted on this site when they are complete. Please send comments and suggestions to pavilionpartners@gmail.com.

How are we going to see the lake through the pillars?

Whatever the final design, the pillars on the first floor of the banquet center will be spaced so that the lake is visible.

Why put the banquet center here instead of somewhere else in the park?

The attraction for weddings and meetings is the ability to see the beach and Lake Michigan from the building.

Why not just renovate/reuse the existing pavilion instead of adding a banquet facility?

The ability to succeed financially with a year-round restaurant operation also requires a good banquet facility.

The public notice advertising the prospectus says nothing about another building. Can Pavilion Partners provide copies of scaled drawings?

The unique value of releasing a prospectus or request for proposal is that it allows potential vendors to submit their ideas. The design of the banquet center is still in progress — the focus right now is on completing the pavilion renovations and getting the restrooms in place. Plans for the banquet center will be released when complete.

Will the building be constructed using sustainable methods and materials?

Pavilion Partners, LLC is looking at all options for construction. LEED certification, which certifies construction is being done in a “green” manner, is being explored

Will the banquet center block the view to Lake Michigan from the entrance road?

The DNR staff and Pavilion Partners, LLC spent time looking at the building site from the old gatehouse location to determine whether the new building will be visible as people drive into the park. The actual footprint of the new building is 8,650 square feet. It does not appear, from our observations, that the new building will obstruct the view of the lake in the distance from the old gatehouse. The new building will be concealed by the trees to the west of the park road.

Will the new structures block the view of the lake?

The banquet center to be located on the east side of the pavilion will be designed with an elevated, entirely open first floor to allow full access, visibility and enhanced picnic areas for beachgoers. The lake will still be visible from the parking lot.

How big is the new banquet center going to be?

The banquet center is about 17,000 square feet, much smaller than the 30,000 square feet that some seem to be sharing. The actual footprint of the building is approximately 8,650 square feet and will be built entirely on existing concrete.

Are building permits required for the construction?

Indiana Dunes State Park is located in an unincorporated area. No building permits are required from Chesterton or other local towns

Why hasn't the Lake Michigan Coastal Program asked for a hearing?

The LMCP is based upon existing state laws and is by default non-regulatory. Because the DNR followed all applicable state laws, the LMCP does not have any additional oversight on the issue.

Terms of lease

What happens when the lease expires?

The original lease term is 35 years with two options to renew. Each renewal period is 15 years. The term of the lease and the options to renew are contingent upon the Lessee performing satisfactorily, not being in default, and meeting the notice provisions of the Lease. Any holdover period is treated as a month-to-month tenancy that automatically terminates after 12 months. Upon expiration or early termination of the lease, the Lessee surrenders the leased premises and improvements to the State. If the lease ends with no renewal or the full 65 years has been completed, the prospectus will go out for bid. The buildings belong to the State.

Can the contract be broken and at what expense?

Yes, the State can terminate the lease either for convenience or for cause. Compensation for such termination is addressed in the lease. Please see the documents section, 14.16 and 14.17, of the lease in the documents section below to view the entire lease.

The contractor has first right of refusal for any future development – does this mean there will be no competition if something else is built?

The preferential right applies if additional services are deemed necessary by the State and are not provided by the State. As the Lessor, the State has the option to provide the additional services regardless of the preferential rights in the lease. Further, the preferential rights also require that certain steps be met and are subject to laws and regulations. As a result, competition might occur.

Is this a strategy/starting point for development of a hotel?

There are no plans to build a hotel at Indiana Dunes State Park. This is a stand-alone project that has great public support. It is not part of a larger strategy or goal of any sort, beyond simply improving the user experience and improving the facility.

Section 4.05 of the lease refers to additions to payments if “significant cost or expenses” incurred. What kind of adjustments would be made?

That has not been determined. Because of the long-term nature of the lease and investment by the Lessee, this language merely provides the opportunity to raise and discuss the situation.

Section 4.06 of the lease indicates that an independent accountant is required. Why does Pavilion Partners, LLC use their own and not one of State’s?

This is standard procedure in contracts. The daily detailed accounting documentation is paid for by the lessee/contractor. Our auditors — both DNR internal auditors and the State Board of Accounts auditors — can request to see Pavilion Partners’ books at any time.

Section 4.07 of the lease indicates that the State runs audits “from time to time” How is this accomplished, and if money is found to be owed, can it be collected?

The DNR has internal auditors for the review of DNR operations throughout the State. However, auditors with State Board of Accounts may also conduct an audit. The “three years” provision provides time for either or both sets of auditors to review information. If an audit shows an underpayment by the Lessee, then the Lessee must pay the amount due with interest. If the Lessee fails to pay, then the State can pursue available legal remedies. Any money owed after the lease ends will still be owed.

What security/protection does the state have to ensure payment of rent and protection from failure?

If the Lessee fails to pay rent, that is a breach of the Lease. The State has the legal remedies available for a breach, if the payment of rent is not made within the designated time period. Additionally, the State is able to file a lien on the Lessee’s property and, in the event of a bankruptcy, the State, as lessor, has the option to terminate the lease and take over possession of the leased premises. See Section 10.03 in lease related to a Surety Bond (page 25).

Is there a hold harmless clause in the lease?

Yes – See Section 10.02 of the lease (page 25) found in the documents section below.

About Pavilion Partners

Who is Pavilion Partners, LLC?

Pavilion Partners, LLC is an investment group that assembled a team of expert talent to renovate the Indiana Dunes Park pavilion and add a banquet center through a public/private partnership with the State of Indiana. Specifically, the team is experienced in historic building renovation, restaurant, banquet center and event management, and has had a significant presence in the food, beverage and tourism industry in northwest Indiana. Pavilion Partners, LLC includes Valparaiso businessman Chuck Williams, managing partner for a real estate development and holding company; Tom Collins and Ryan Richardson, who operate County Line Orchard in Hobart; and architect Scott Virtue, who worked with Williams on the award-winning restoration of the historic downtown Valparaiso building.

What are the qualifications and character of the builders?

Resumes and information are provided on pages 21-25 of Pavilion Partners’ proposal, which can be found in the documents section below.

Who is doing the actual construction?

Luke Oil Construction.

What historic preservation design experience has the architect had?

This is listed in the qualifications section in the proposal that is attached to the lease and at www.virtuearchitects.com.

Finances and revenue

Who is paying for this development?

Pavilion Partners, LLC is fully funding the project. No state funds are being used. The pavilion, as well as the new facilities, will belong to the State of Indiana, both during and after the lease period.

Why isn’t the State doing this project with State funds?

The significant capital investment required, along with the long-term operational costs, make that impractical. Public-private partnerships are working successfully in our system in several locations, and this is considered the best option for preventing further deterioration of the pavilion and ensuring its restoration and use for years to come.

Why not just renovate the pavilion and build no new structure beside it?

Revenue generated from restaurant facilities in the pavilion alone is not a financially viable project. The additional revenue generated by a banquet center will allow the restaurant to be available year-round for Dunes visitors.

What are the gross receipts expected to be, and why is the percentage the State is going to receive so low?

See Pavilion Partners’ pro forma financial proposal on page 18 of the Pavilion Partners proposal, which is attached to the lease and posted in the documents section below. It should be noted that Pavilion Partners is building a restroom/shower facility at its expense. The restroom/shower facility will become a State asset.

How do other public/private partnership profits for DNR compare to this one?

We have public-private partnerships in several other locations as noted below:

Where do the payments (2 percent of revenue and $18,000 in rent per year) go?

Lease payments and the percentage of the profit that the DNR receives goes directly into a dedicated account for Indiana State Parks.

How much gross revenue does Indiana Dunes State Park generate annually, and how much State funding does the park receive annually?

In 2014, the park generated $1,451,600. Indiana Dunes State Park’s Fiscal Year 2014 operating expenditures were $938,803. Some parks generate more dollars than they use; some do not. All revenue from all Indiana State Parks is deposited in a dedicated fund that supports all 32 parks. This allows us to provide a state parks experience within an hour of every Hoosier.

Why does revenue matter? Where does revenue go?

The Indiana State Parks system was founded with a “user pays” philosophy in lieu of being solely reliant on tax dollars. Currently, 70 percent of our operational costs come from user fees and revenue from contracts such as this one. Only 30 percent is funded through the State legislature’s appropriation process. Revenue from Indiana Dunes, and from all other state parks, goes directly to the Division of State Parks to support the State Parks system as a whole. Indiana Dunes directly benefits from this structure through the funding of staff salaries, utilities, supplies and other operational costs.